Mcchip Resources (MCS) AI Stock Analysis

• Market Cap: C$9.99M
• Dividend Yield: 2.82%
• Average Volume (3M): 3.23K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 0.89
• Revenue Growth: N/A
• EPS Growth: 46.81%
• Country: CA
• Employees: 4
• Sector: General
• Sector Strength: N/A
• Industry: Oil & Gas Energy
• EPS (TTM): 0.70
• Shares Outstanding: 5,710,096
• 10 Day Avg. Volume: 2,381
• 30 Day Avg. Volume: 3,231
• PEG Ratio: <0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 2.99
• P/FCF Ratio: 18.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: C$1.50 ▼(-17.58% Downside)

Mcchip Resources' strong financial performance, characterized by robust revenue growth and high profit margins, is the primary driver of the stock score. The valuation suggests potential undervaluation, offering an attractive entry point. However, technical indicators point to a bearish trend, which tempers the overall score.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong business expansion and increasing market demand for Mcchip Resources' products, enhancing long-term viability.

Profit Margins

High profit margins reflect effective cost management and operational efficiency, ensuring sustained profitability and competitive advantage.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent financial management and financial stability, providing resilience against economic fluctuations.

Negative Factors

Cash Flow Volatility

Cash flow volatility can hinder long-term planning and investment, necessitating improved operational consistency for sustained growth.

Earnings Per Share Decline

A significant decline in EPS suggests challenges in profit generation per share, potentially impacting investor confidence and stock performance.

Debt Increase

Rising debt levels, if not managed, can lead to financial strain, limiting the company's ability to invest in growth opportunities.

Mcchip Resources Business Overview & Revenue Model

Company Description

McChip Resources Inc. operates in the natural resource industry in Canada. The company invests in petroleum interests, as well as direct and indirect interests in minerals. It also holds interest in the Saskatchewan Potash project located in the province of Saskatchewan. The company was formerly known as Madsen Red Lake Gold Mines Limited and changed its name to McChip Resources Inc. in May 1981. The company was incorporated in 1935 and is based in Toronto, Canada.

How the Company Makes Money

Mcchip Resources generates revenue primarily through the sale of mined minerals and metals. The company operates under a revenue model that includes direct sales to industrial clients and partnerships with larger mining corporations for joint ventures and resource sharing. Key revenue streams include the extraction of ores, refining processes, and the delivery of finished product contracts. Additionally, MCS may benefit from strategic alliances with technology providers and environmental firms, which can enhance operational efficiency and open new market opportunities, thus contributing to its overall earnings.

Mcchip Resources Financial Statement Overview

Summary

Mcchip Resources demonstrates strong financial performance with significant revenue growth, high profit margins, and a stable balance sheet. The company has improved its cash flow situation, although maintaining stability in cash flows is crucial for long-term growth.

Income Statement

Mcchip Resources demonstrated a robust financial performance with a significant revenue growth rate of 171% from 2023 to 2024, indicating strong business expansion. Gross profit margins are consistently high, peaking at 98% in 2024, showcasing effective cost management. The net profit margin for 2024 is exceptionally high at 225%, driven by substantial net income growth. EBIT and EBITDA margins also reflect positive operational efficiency, with a notable recovery in profit margins compared to previous losses.

Balance Sheet

The company's financial health is solid, with a strong equity base and a low debt-to-equity ratio of 0.17 in 2024, indicating prudent financial management. The equity ratio remains high at 83% for 2024, underscoring financial stability. However, the increasing total debt over the years could pose some risk if not managed carefully.

Cash Flow

Mcchip Resources exhibited a positive turnaround in cash flows, with a considerable increase in operating cash flow to $208,800 in 2024 from a negative value in 2023. The free cash flow has also improved significantly, highlighting enhanced liquidity. Nonetheless, the volatility in cash flows over the years suggests potential underlying operational challenges that need attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31M	1.30M	480.49K	560.20K	695.28K	528.60K
Gross Profit	1.28M	1.28M	452.90K	546.18K	679.79K	527.31K
EBITDA	3.42M	452.27K	-335.45K	-150.47K	-161.29K	-96.19K
Net Income	4.87M	2.94M	563.13K	-374.54K	1.23M	1.79M
Balance Sheet
Total Assets	15.41M	12.83M	10.34M	9.80M	9.65M	8.19M
Cash, Cash Equivalents and Short-Term Investments	11.70M	10.83M	8.84M	8.28M	7.78M	6.42M
Total Debt	0.00	1.80M	1.82M	1.56M	830.00K	632.01K
Total Liabilities	621.88K	2.15M	2.10M	1.78M	1.02M	831.53K
Stockholders Equity	14.79M	10.68M	8.25M	8.03M	8.63M	7.36M
Cash Flow
Free Cash Flow	-35.33K	208.80K	-149.10K	140.96K	121.56K	34.00K
Operating Cash Flow	-35.34K	208.80K	-149.10K	140.96K	163.23K	55.26K
Investing Cash Flow	5.93M	291.38K	-208.62K	-169.54K	-86.53K	593.77K
Financing Cash Flow	-2.36M	-537.14K	-85.53K	420.20K	-5.91K	-614.34K

Mcchip Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MCS, the sentiment is Positive. The current price of 1.82 is above the 20-day moving average (MA) of 1.78, above the 50-day MA of 1.70, and above the 200-day MA of 1.37, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 69.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MCS.

Mcchip Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCS	70 Outperform	C$9.99M	2.02	11.04%	2.82%	―	46.81%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
GIGA	48 Neutral	C$18.40M	-7.18	-11.32%	―	―	-17.47%